Built at Schichau in Danzig, launched on Dec. 12, 1942 and commissioned on Feb. 20, 1943 the type VIIc U-boat, U-738 would never see war service. On February 14, 1944, a few days short of a year after she was commissioned, the boat was in the Baltic on a training exercise when she was rammed by SS Erna off off Gotenhafen (Gdynia), Poland. Twenty-two men, including her commanding officer were lost. Twenty-four men survived. The boat was raised on Mar. 3, 1944 and scrapped.

This was not the only such loss in the Baltic suffered by the U-boat arm during the war, U-7 sank in a diving accident on Feb. 28, 1944 with all hands. On Mar. 17, 1944 U-286 and U-1013 collided east of Rügen Island and sank, only U-286 returned to service. On the same day U-28 sank at the pier, it was raised and scrapped.